I have received a lease offer for 5.97 net mineral acres at .25% royalty and a bonus of $1500 per net mineral acre.. It’s located in Section 20, Block 74, A-1486. I’d appreciate an opinion on whether the bonus is enough. Thanks.
Good question! Doesn’t seem to be much activity in this area. I have seen 3k per acre being offered SW of you about 3 miles in blk 26 also at .25. I would definitely consult someone before signing to make sure your get favorable terms and a good bonus.
Personally, $1500 per NMA is a good deal for this location / especially with the 25% royalty interest.
Any extension offered with the lease?
Make sure you sign a “no cost” lease to avoid deductions from your royalty revenue.
Area is up on the edge of the Central Basin Platform - not in the prolific Delaware Basin area to the west. Odds are that the group targeting this area is looking at deeper targets (Barnett, Woodford, etc.?)
If you had a much larger NMA position (e.g. 10-20 times larger), you may be able to push for higher bonus.
Realize that you will have a small part of any Drilling Unit (which will be a minimum of 160 acres but probably more like 320 acres)
This will open the RRC’s GIS Map Viewer on a permitted well in the section to the north adjoining yours https://gis.rrc.texas.gov/GISViewer/index.html?api=49535124
This link will open the RRC’s GIS Map Viewer on a permitted well in the section to the north adjoining yours. This link will open 3R Operating, LLC’s permit for said well.
I am new because I just inherited my interests. I received an offer for 25% royalty with a 2K bonus for three years and 3 year extension.
What advice can you give about signing the standard lease. Should an attorney read before signing? Cost prohibitive for 6 net mineral acres?
Understand that it is cost prohibitive to use a lawyer, but errors in lease will ALWAYS work against you - and cost you money.
Biggest thing is to aks for a cost free lease. Those expenses that can be charged and take up to 15% of your monthly revenue if your lease is not “cost free”
Lots of smaller issues in standard lease forms - damages, shut in payments, Pugh clause / depth rights, etc.
Personally, it is worth the money to get a lawyer. Your $12,000 bonus may be cut by a third, but it will be worth it
Just my opinion
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And the lease may be represented as being cost free–or actually have that verbiage included–while not in fact operating as a cost free lease [in Texas]. This is where the Oil and Gas attorney’s knowledge is very valuable.
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Thank you, good information.
Do you have current information about the bonus offers and royalty offers being made in the Woodford and Barnett formations?
I received an offer along the same lines as the others. There is currently a rig drilling the permitted well in section 17 which is north of section 20 where SRShraber is located and immediately east of my interest in section 16. I have not been paying much attention to that area. Going to see what I can get done on a lease.
Can you recommend an attorney who represents the mineral owner? Winkier County , TX lease offer
I would invest the 2 or 3 K it may cost to review the lease because you can be assured that the lease is not in your favor. FYI I just leased in Winkler for 2 K bonus but I had a Texas attorney review and MODIFY to be a more balanced lease. My lease is for 1/4 royalty with Pugh depth clause and a no deduct for expense provision. I obtained Eric Camp, an attorney through this web site.
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Thank you. Did your attorney also negotiate the bonus , terms and royalty % or just review and amend your lease?
we started with a “typical suggested fair lease” that have used over the years using primarily suggestions from this web site, Eric could confirm through his contacts that my requested royalty and bonus was reasonable. he also reviewed the lease document and suggested a few changes. we had good communication
Did you get $2000/acre bonus for minerals in Winkler county? If so, are the minerals west or east of Kermit?
I leased my interest in 2 sections 13 and 14 for $1000/MA. We are located 1 section east of the NM and Texas line. The jackrabbit well in sec 13 has already quit producing and the 3mile bullsnake well in sec 14 is now shown as a dug but not finished well. We are disappointed for sure!
I am not expert, but if the company expects the wells to be non-economic, what incentive would it have to have leased your minerals? The Bullsnake well now shows two months of production [August 2025 750 BO and September 2025 2249 BO] on the Texas Comptroller’s CONG –Crude Oil and Natural Gas– *website. This suggests the well is still flowing back. And could the Jackrabbit well have run into barium sulfate deposit problems like an earlier, nearby one drilled by QEP Resources did? Maybe the company is trying to correct this problem. *
| | Period: 2508 | | | | | | | | | | | | | | | | | | | | | | Pro | 17307675490 | 248/YES | | | | | | 32008096458 | GIBSON ENERGY MARKETING, LLC | YES/40.5 | 750 | 0 | 750 | $48,313.89 | $0.00 | $0.00 | $48,313.89 | 0.000 | $0.00 | 0000316 | NO | | | Period: 2509 | | | | | | | | | | | | | | | | | | | | | | Pro | 17307675490 | 248/YES | | | | | | 32008096458 | GIBSON ENERGY MARKETING, LLC | YES/42.2 | 2,249 | 0 | 2,249 | $142,819.46 | $0.00 | $0.00 | $142,819.46 | 0.000 | $0.00 | 0000321 | NO |
The jackrabbit well had just started drilling when I leased. The Bullsnake well had not been dug but i think had been permitted. My Mineral ware program does not show any production for Bullsnake, only the symbol for dug but not completed. I can see that I am looking for TX info in the wrong place. we have not been given a division order for for bullsnake. Maybe a Christmas present?
Oh, I see. I thought you had held out and the company came back and leased you. I don’t know enough to offer a guess as to whether the Jackrabbit well could have just stopped producing due to running out of oil. The barium sulfate problem in a nearby Woodford or Barnett well has been published. The CONG website will have the first few months of production and then you will be able to view it on the more well known Texas RRC Production Data Query page.
Found this completion report filed recently which describes Jackrabbit as a shut-in producer. “Unperfed WRO packet”?
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